EuroCham engages in dialogue to strengthen EU-Vietnam trade relations

Photo: VGP

The strategic discussion, held at the government headquarters on March 2, provided a critical platform for open discussions on trade and investment priorities, regulatory improvements, and opportunities to enhance Vietnam’s appeal to European investors, including key directives from PM Chinh instructing to amend the on-the-spot import-export regulations as soon as possible and to ensure that the legal framework is amended to facilitate investor access to renewable energy.

A key theme was strengthening Vietnam’s investment climate for long-term economic growth. EuroCham underscored the importance of a stable and transparent legal framework, advocating for regulatory reforms that would enhance Vietnam's attractiveness as an investment destination.

Drawing a parallel to Vietnam’s resilience during Typhoon Yagi, Bruno Jaspaert, EuroCham Vietnam chairman said, “During Typhoon Yagi, no houses in Haiphong collapsed because they were built on solid foundations. Similarly, Vietnam must establish a robust legal framework to solidify its position as a top investment destination. Streamlining administrative procedures and reducing regulatory burdens will not only pull in investment but also drive long-term economic stability."

“Since 2011, EuroCham has published the quarterly Business Confidence Index (BCI) to assess business sentiment on Vietnam’s economic outlook. In our latest BCI report, 3 in every 4 European businesses recommended Vietnam as an investment destination. However, to enhance Vietnam’s attractiveness, we must streamline administrative procedures to remove persistent bottlenecks.”

EuroCham called for three key areas for improvement, as consistently highlighted by businesses in the BCI: reducing regulatory burdens on businesses; streamlining company establishment and investment registration processes nationwide; and simplifying work permit requirements to attract international expertise and align Vietnam’s visa regulations to apply consistently to all EU member states.

Additionally, it called for greater national branding efforts to position Vietnam as both a dynamic investment hub and a competitive international business destination.

The discussions were met with strong engagement from PM Chinh, who reaffirmed Vietnam’s commitment to fostering a business-friendly environment and encouraged European investment in high-tech industries, infrastructure, and renewable energy.

Emphasising Vietnam’s ambition to achieve 8 per cent GDP growth this year, the Prime Minister called for stronger collaboration between businesses and government ministries to create a thriving investment climate. He underscored the government’s dedication to addressing business concerns and enhancing administrative efficiency, pledging continued efforts to streamline procedures and support enterprises in expanding their operations in Vietnam.

European Union Ambassador to Vietnam Julien Guerrier emphasised the EU’s dedication to supporting Vietnam’s green transition and economic modernisation. He highlighted the need for clear and predictable regulations, uniform application of the law across all levels of administration and provinces and alignment with international standards. This will help Vietnam to unlock the full potential of EU-Vietnam trade and investment cooperation.

Guerrier reaffirmed Europe’s readiness to bring more investment, more technology, and more opportunities to Vietnam.

"EU-Vietnam trade has already reached €68 billion ($71.4 billion) in 2024, with the EU-Vietnam Free Trade Agreement (EVFTA). The full and effective implementation of EVFTA is the strong foundation for the EU-Vietnam partnership to go much further," he said.

"Further progress means securing an inviting environment for investors in Vietnam with clear and predictable rules, consistent application including across provinces, and faster decision-making. The EU is committed to securing the full ratification of the EU-Vietnam Investment Protection Agreement within the best possible timeframe."

Ambassador Guerrier welcomed Vietnam’s ongoing administrative reforms and the call of Vietnam’s leaders for faster decision-making, for reducing business cost, and for simplifying the business environment.

PM Chinh said, “The rapidly changing global context requires both Vietnam and the EU to take a flexible and proactive approach. We might live 100 years, but we need a vision that spans 1,000 years, not only in investment but also in long-term cooperation, with people and businesses at the centre.”

He proposed a symbolic initiative to celebrate 35 years of diplomatic relations between Vietnam and the EU, “Let us set a goal to increase economic growth from the European business community and from Vietnam, each by at least 8 per cent this year, aiming for double digits in the future.”

EuroCham reaffirmed its commitment to working closely with the Vietnamese government to implement practical solutions that address these challenges.

“We are not just here to present challenges, but to work collaboratively on solutions. Our goal is to contribute to reducing administrative barriers by at least 30 per cent, aligning with Party General Secretary To Lam’s call for Vietnam’s broader economic reform objectives. Through our Whitebook, which is set to launch next month, EuroCham will provide concrete recommendations to address these issues and foster an even more attractive investment climate,” Jaspaert said.

European businesses maintain positive sentiment for Vietnam European businesses maintain a positive sentiment about Vietnam despite the economic challenges posed by Typhoon Yagi, according to EuroCham Vietnam's latest findings.

Vietnam sees uptick in European business sentiment EuroCham Vietnam released its Q4/2024 Business Confidence Index (BCI) report on January 8, revealing a significant rise in business sentiment, which reflects resilience amidst a turbulent global landscape in terms of economics, the environment, and geopolitics.

Aligning with green EU edicts challenging but achievable The European community is showing its new investment and expansion waves to Vietnam as an investment destination based on a diversified policy of free trade agreement and a stable economic growth. European Chamber of Commerce in Vietnam (EuroCham) chairman Dominik Meichle talked to VIR’s Ngoc Anh about his assessment of the investment appetite of European investors to Vietnam.